Maxwell MPA
Leadership Workshop
with Howie Phanstiel
June 22, 2009
Maxwell Leadership Workshop Agenda
Introduction
9:10 – 9:20 a.m.
What is Leadership & Who Are the Great Leaders?
9:20 – 10:00 a.m.
Leading Through Diffuse Power Structures
10:00 – 10:15 a.m.
Break
10:15 – 10:20 a.m.
Leveraging Brands to Arouse Change: PacifiCare
And Best Friends Animal Society
10:20 – 11:00 a.m.
Aligning Strategy, Culture and Leadership Practices 11:00 – 11:15 a.m.
Celebrating Results
11:15 – 11:30 a.m.
Lunch, Discussion & Q&A
11:30 – 1:00 p.m.
My Workshop Goals


Share knowledge about fulcrums and forces
that impact organizational performance
Inspire you to be the best leader you can
be
Principle of Greatness
“Disciplined people who engage in
disciplined thought and who take
disciplined action”
Jim Collins,
Good to Great and the Social Sectors
What is Leadership?
LEADERSHIP is the skillful use of influence
to bring about the accomplishment of goals.
The purpose of LEADERSHP is to produce
change.
The goal of LEADERSHIP is to produce success
(results that move organizations forward).
How?

Effective leaders leverage resources and
leadership style to produce clarity,
governance, support standards and
coaching for those they lead. They
profoundly encourage success.
Note: In great organizations, all members lead and great
leaders are also good followers.
Types of Leaders


Transactional leaders work within existing
structures, cut deals and make trade-offs
between their followers and organizational
needs.
Transformational leaders radically transform
and renew their followers, themselves and
their organizations.
James MacGregor Burns
Who are the Great Leaders?




people made of the “right stuff”, Jim
Collins
people who are the “master conductors”,
Peter Drucker
people who are the “stars”, Jack Welch
people who possess “Executive
Intelligence”, Justin Menkes
Other Characteristics of
Great Leaders
“A man, to lead, must have a pot belly”
– Ancient Greek myth according to Susan Komizes
from Chancellor Buzz Shaw’s book on Leadership
Are Leaders Born or Made?
Max Weber and the charismatics
Does the man make the times or the times
make the man?
- Winston Churchill
- Mao-Tse-Tung vs. Deng Xiaoping
Leaders vs. Managers
“Management is doing things right;
leadership is doing the right things.”
- Peter Drucker
Great Leaders Make A Difference
“Give me a lever and a place to stand and I will move
the earth.”
- Archimedes, 3rd Century BC
“Don’t be afraid to take a big step if one is indicated.
You can’t cross a chasm in two small jumps.”
- David Lloyd George
“One man can make a difference. Every man should
try.”
- John F. Kennedy
Phanstiel’s Criteria for Great
Leaders

Great Leaders:



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make good decisions
take risk
lead, don’t push
create zealots *
blend personal humility and professional will
* ”when spider webs unite they can tie up a lion”
- old Ethiopian proverb
Limitations on Modern Leaders: Less
Concentration of Pure Executive Power


Jim Collins: Sarbanes-Oxley, Shareholder
Activism, Consumer Activism, Regulatory
Activism, Highly Mobile Knowledge Workers
Jean Lipman-Blumen: Twin tensions between
explosion of global interdependence and
diversity requires leaders to do a better job of
connecting diverse networks, institutions and
constituencies without bowing to
authoritarianism.
Leading Through Diffuse Power Structures

Leadership influence can be gained through power of:



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language
inclusion
shared interests
coalition
- Frances Hesselbein,
CEO Girl Scouts of America
Legislative leadership requires persuasion,
political currency and shared interests.
“Personal humility and professional will is a key
factor in creating legitimacy and influence”
- Jim Collins
Socialized Power vs.
Personalized Power


sPower - Influence is used for the benefit
of a greater good and/or towards an
achievement goal. The goal is for the
direct or indirect benefit of another.
pPower – The concern for feeling or being
perceived as strong, effective or influential
is frequently selfish and self-aggrandizing.
Renewal
Transformation from “I” to “We”

Learn that leading is not about your
success but rather the success that you
can create by empowering others to
lead.
The Transformation from
“I” to “We”
Crucibles
True North by Bill George
Leveraging Brands to Arouse
Change
“Without work all life goes rotten. But
when work is soulless, life stifles and
dies.”
- Albert Camus
Building A New Brand
“Arousing Our See”
We learned from Howard
Schultz, CEO of Starbucks that
brand is the sum of
everything a
consumer experiences
“
“
Authentic brands emanate from everything the
company does, from store design and site selection
to training, production, packaging and merchandise
selection. Everything matters.
Howard Schultz,
Chairman and CEO Starbucks
Building A New Brand For PacifiCare
In 2001, we surveyed:
400 consumers in CA (65% non-senior and 35% senior),
400 consumers in other PHS markets,
150 consumers outside our current markets,
400 more consumers nationwide via the internet,
67 providers,
101 benefit managers,
124 brokers and consultants,
and
conducted 31 focus groups
So what’s Important?
1. Show some concern
2. Be perceived as being trustworthy & high
quality
3. Solve problems
Additional Focus Groups
“Actions speak louder than words.”
“You have to show how you are concerned.”
“Give me some way to verify you have a pattern of concern.”
“Do what you promise you would do.”
“I want to know what you’re doing for me.”
Bottom Line:
The only way consumers will believe you care,
is if you prove it.
Brand Positioning
PacifiCare believes caring is good.
Doing something is better.
Aligning Strategy,
Culture & Leadership
Practices
Two key questions every leader
has to ask Is my organization smart?
 Is my organization healthy?

“Smart” translates to very intelligent
plans, service models, financial
discipline – all designed to yield
that elusive goal “competitive
advantage” in the private sector
and “credibility” in the social sector
because of execution of the
concepts.
In the social sectors, “Smart”
translates to performance as
defined by results and efficiency in
delivering on the social mission.
Most business graduate schools and
executives focus solely on the
“smart” piece.
This is the “hard” measurable parts
of the organization.
“Healthy” is creating a work environment
that stimulates individuals and groups
to perform to their highest capacity and
continually improves, yielding superior
results and a workplace the employees
would want their sons and daughters to
work in.
Most behaviorists focus on the
“healthy” piece. This is what is
seen as the “soft” issues – and is
alienating to most line executives.
This dynamic tension results in an “either or
mental” set…
At PacifiCare we focused both on culture – (the
cause of health) while at the same time
continuing to refine the “smarts” (strategy).
We sought to align strategy, culture and
leadership style.
Alignment
“All the elements of a company
work together in concert within
the context of the company’s core
ideology and the type of progress
it aims to achieve.”
Excerpted from Collins, J.C. & Porras, J.L., Built to Last: Successful Habits of Visionary Companies, New York: HarperCollins, 1994
Strategy
Strategy = Magnetic North, Formula
For Success
Strategy is the Decider!
Strategy determines the “right”
improvement initiative(s)
Raising the Bar
8ft
Fosbury Flop
Straddle
Western Roll
6ft
Scissors
1900
1910
1920
1930
1940
1950
1960
1970 1980 1990
Collins & Porras’ Findings

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

Leaders concentrate on building an organization, per se
Establish a core ideology – core values and a clear sense
of purpose
Preserve their core ideology, but also continually foster
innovation and progress
Set big difficult goals for people to accomplish
Build cult-like cultures that are strong, integrated,
focused and consistent
Keep experimenting
Grow their managers from within
Keep trying to do things better
Cumulative Stock Returns of $1 Invested
January 1, 1926 - December 31, 1990
31
Treacy & Wiersema Connection
They researched the question:
Why does one group of companies
achieve and sustain market leadership
while others do not?
Here’s what they found:
> Three, fundamental “value disciplines”
> Must find your ”unique value” to deliver
Treacy & Wiersema Connection
They discovered Three Core
“Value Disciplines”:
Operational Excellence - Example: Wal-Mart
Customer Intimacy - Example: Airborne Express
Product Leadership - Example: Intel
Four Core Strategies
CUSTOMER INTIMACY
Close partnership
High customization
Total solution
High personalization
Co-development
Incremental relationship
DISCONTINUOUS INNOVATION
Fuller realization of potential
Growth of customer
Raising of human spirit
Further realization of ideals,
values, higher order purposes
Take customer to another plateau
OPERATIONAL EXCELLENCE
Dependability
Efficiency
Commodity/Commodity-like
Accuracy
Predictability
Convenience
PRODUCT LEADERSHIP
One of a kind
Create market niche
Extremely unique
Unmatched product/service
Excellence
Constant innovation
Social Sector Sample Strategies
and Value Disciplines
COLLABORATION/SYNERGY
Family Services
Municipal Town Meetings
Government Health Systems
Adoption Agencies
CULTIVATION/ENRICHMENT
World Bank
AID Organizations
Certain NGOs
Peace Corps
CONTROL/CERTANITY
Social Security Administration
US Army
COMPETENCE/SUPERIORITY
NASA
US Marine Corps
Cleveland Orchestra
Culture


The “Missing Link” between
Strategy, Leadership, and bottomline performance
“The way we do things around
here in order to succeed”
Kotter & Heskett’s Research
They were curious about the impact of
culture on organizational performance
207 firms from 22 industries
 Determined cultural strength
 Economic performance between 1977 – 1988
 Interviewed 75 industry analysts

Kotter & Heskett’s Definitions

Cultural Strength = Internally Consistent
• Effective cultures:
 Fit the strategy
 Were adaptive while still preserving core values
 Balanced the needs of 3 stakeholders:
> Employees
> Customers
> Shareholder
Excerpted from Kotter, J.P. & Heskett, J.L Corporate Culture and Performance. New York: The Free Press. 1992
Kotter & Heskett’s Research Results
Strong &
More Effective
Strong &
Less Effective
Expanded Workforces
282%
36%
Increased Revenues
682%
166%
Grew Stock Prices
901%
74%
Improved Net Incomes
756%
1%
The Power of Culture
Culture’s influence is more powerful than anything
else including:
 Strategy
 Structure
 Financial analysis
 Management Systems…
when it comes to impacting
Bottom Line Performance
STRATEGY + CULTURE
Customer Intimacy
Operational Excellence
Collaboration
Control
“Dream The Team”
“Plan The Work –
Work The Plan”
Discontinuous Innovation
Product Leadership
Cultivation
Competency
“Dream The Dream”
“Beat The Plan &
Win The Game”
Core Culture Principles
Collaboration
Grouping/Teaming
Human process
Incrementalism
Community
Control
Certainty
Predictability
Stability
Organization per se
Cultivation
Meaningfulness
Fulfillment
Growth
Values
Competence
Distinction
Excellence
Expertise
Concept
Core Culture Strengths
Collaboration
Teaming comes easily and
naturally
Very egalitarian
Very receptive to diversity
Power is based in
relationships
Cultivation
Values are paramount
Based on belief and
commitment
Strongly encourages selfexpression
Premised on good will
Control
Very orderly and predictable
Decision making is very careful
and conservative
Gets and stays in control
Expectations, roles and jobs
are definite
Competence
High performance standards
Very win driven
Strong achievement focus
Emphasizes merit and
demonstrated performance
Centered on concepts
Four Core Leadership Practices
Participative
Directive
Team Builder
Coach
Close partner w/customers
Integrator
Conflict Manager
Ensures utilization of diversity
Authoritative
Conservative
Firm/Assertive
Definitive
Long-range planner
Charismatic
Standard-Setter
Cultivator
Catalyst
People steward
Idealist
Commitment Builder
Appeal to higher-level vision
Conceptual visionary
Challenger of others
Spurs competition
Tough Taskmaster
Stretcher of people
Drives constant innovation
Organizational Structure
by Core Culture
COLLABORATION
CONTROL
Type name here
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Type name here
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Group; Cluster
Hierarchy
CULTIVATION
COMPETENCE
Sphere; Web
Matrix
Type name here
Type title here
Cultures “Out of Balance”
Collaboration
•relationships more important than performance
•accountability slips
•over compromising prevails
•unnecessary meetings
•indurduality stifled, high performers shunned
•mediocrity tolerated
•in-bred
•cliquish
•leaders/managers “laissez faire”
Cultivation
•intention all that matters
•lack of structure, system, direction & focus
•people put off by authority
•people become overly moralistic, judgmental,
self-expressive
•excessive idealism, projects lay on the shelf
or unfinished
•details overlooked
•necessary controls missing
Control
•overly bureaucratic, big is better
•too many organized layers
•meaningless polices/procedures
•training and development ignored
•functional silos, turn down
•bad news rises slowly
•conflict suppressed
•low innovation; good ideas lost
•Organization becomes inwardly focused, ignores external
•people treated as replacement parts
•senior management distant
Competence
•excessive win-loose behavior
•excessive individualism
•people refuse to team
•people constantly tense
•leaders/managers never satisfied, distant, aloof
•paralysis/analysis
•arrogant behavior
•levels of mistrust
•organization never celebrates
•people overworked, stressed out
•people worried about making mistakes
Managing Complex Change
Components of Change
Result
Vision Clear &
Communicated +
Values
(Lived)
+
Culture &
Alignment
+
Skills /
Abilities
+
Financial
Incentives
+
Resources
+
Action Plan
+
Execution
= Change
+
Values
(Lived)
+
Culture &
Alignment
+
Skills /
Abilities
+
Financial
Incentives
+
Resources
+
Action Plan
+
Execution
= Confusion
+
Culture &
Alignment
+
Skills /
Abilities
+
Financial
Incentives
+
Resources
+
Action Plan
+
Execution
= Cynicism
+
Skills /
Abilities
+
Financial
Incentives
+
Resources
+
Action Plan
+
Execution
= Resistance
+
Financial
Incentives
+
Resources
+
Action Plan
+
Execution
= Anxiety
+
Resources
+
Action Plan
+
Execution
= Crawl
+
Action Plan
+
Execution
= Frustration
+
Execution
= False Starts
Vision Clear &
Communicated
-
Vision Clear &
Communicated +
Values
(Lived)
-
Vision Clear &
Communicated +
Values
(Lived)
+
Culture &
Alignment
-
Vision Clear &
Communicated +
Values
(Lived)
+
Culture &
Alignment
+
Skills /
Abilities
-
Vision Clear &
Communicated +
Values
(Lived)
+
Culture &
Alignment
+
Skills /
Abilities
+
Financial
Incentives
-
Vision Clear &
Communicated +
Values
(Lived)
+
Culture &
Alignment
+
Skills /
Abilities
+
Financial
Incentives
+
Resources
-
Vision Clear &
Communicated +
Values
(Lived)
+
Culture &
Alignment
+
Skills /
Abilities
+
Financial
Incentives
+
Resources
+
Action Plan
-
= Failure
© 2007 Spencer, Shenk & Capers